Most European longs producers have returned to the market after the holiday period with a significant price increase, citing constantly rising energy costs. The issue is related to the consequences of Russia’s invasion of Ukraine and related sanctions in the hydrocarbons sector adopted by the EU. “In the EU, nowadays all kinds of price increases depend on costs only. Market demand is still very uncertain due to the obviously difficult international environment,” a trader commented.
In particular, Italian mills have increased their domestic base rebar prices by at least €50/mt over the past month to €700/mt ex-works or to €960/mt ex-works including regular size extras. Some producers announced that their offer prices for end-of-September and October deliveries increased by €100/mt, but the rebar available from stocks may be booked with only a €50/mt price increase. Italy’s wire rod price for the European markets increased at the end of the week by €50/mt from €950/mt DAP to €1,000/mt DAP, specifically to Poland and Lithuania. The domestic wire rod offers in the local market of Italy are at €1,000/mt DDP northern Italy, up €50/mt over the past week.
In Poland, the local rebar price is at €870-900/mt CPT, up by around €40-60/mt over the past month. In Greece, the local rebar price is set at €970/mt ex-works, SteelOrbis has learned. “Everyone is on hold, with very few offers or quotes due to energy uncertainties. Demand is on a downtrend in the Balkans. It is a very scary situation,” a source told SteelOrbis.